Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: SYRS

Syros Pharma Teams Up with Global Blood Therapeutics to Fight Sickle Cell Disease

Share on Stocktwits

Source:

Syros Pharmaceuticals' shares rose 20% today after the firm reported that it entered into a collaboration agreement with Global Blood Therapeutics for development of therapies for sickle cell disease and beta thalassemia that could result in payments to Syros as high as $315 million over three years.

This morning, gene control platform and biopharmaceutical development firm Syros Pharmaceuticals Inc. (SYRS:NASDAQ) and clinical-stage biopharmaceutical company Global Blood Therapeutics Inc. (GBT:NASDAQ) announced that they have entered into a collaboration to discover, develop and commercialize novel therapies for sickle cell disease (SCD) and beta thalassemia.

The firms stated that the collaboration will combine GBT's therapeutic area leadership with the power of Syros' leading gene control platform. Syros and GBT indicated that the agreement was established in order to find new medicines to identify therapeutic targets and discover drugs to induce the production of fetal hemoglobin, which they advised is known to exert protective effects on the red blood cells of patients with SCD and beta thalassemia and mitigate the clinical manifestation of these diseases.

According to the agreement terms, GBT will be required to pay $20 million upfront to Syros and fund up to $40 million in preclinical research for at least three years. Under the terms of the agreement, GBT will receive an option to obtain an exclusive worldwide license to develop, manufacture and commercialize products resulting from the collaboration. The companies mentioned that if GBT were to exercise its exclusive worldwide license option, Syros could receive a total of up to $315 million under that scenario, if all the other conditions and milestones of the development and commercialization agreement are met.

Nancy Simonian, M.D., CEO of Syros Pharmaceuticals, commented, "We believe it is possible to provide a functional cure for patients with sickle cell disease or beta thalassemia by switching on the gamma globin gene with an oral medicine...Partnering with GBT, an established leader in sickle cell disease with proven research, development, manufacturing and commercialization capabilities, allows us to expand and accelerate our program, exploring multiple approaches in parallel with the aim of bringing much-needed new therapies to market for patients with sickle cell disease and beta thalassemia as quickly as possible."

Global Blood Therapeutics' President and CEO Ted W. Love, M.D., commented, "The discovery and development of novel therapeutic approaches to treat sickle cell disease has been a driving force for GBT since we were founded...We believe that Syros' approach to inducing fetal hemoglobin is one of the most promising ways to identify the next generation of therapies to treat sickle cell disease and beta thalassemia at a fundamental level – upstream of serious complications such as organ damage, organ failure and early death. We will continue to seek the best scientific approaches to transform the treatment of these devastating lifelong diseases."

Syros Pharmaceuticals is headquartered in Cambridge, Mass., and states that it is "redefining the power of small molecules to control the expression of genes" and that by using the firm's unique abilities it aims to develop medicines that provide a profound benefit for patients with diseases that have previously eluded other genomics-based approaches. The company's pipeline includes SY-1425 currently in a Phase 2 trial for treatment in a genomically defined subset of acute myeloid leukemia patients, and SY-5609, a highly selective and potent oral CDK7 inhibitor in investigational new drug application-enabling studies in cancer. The firm indicated that it also has several other preclinical and discovery programs in oncology and monogenic diseases, including sickle cell disease.

Global Blood Therapeutics has a market cap of approximately $4.7 billion and is based in South San Francisco, Calif. The company describes itself as a clinical-stage biopharmaceutical company "determined to discover, develop and deliver innovative and life-changing treatments that provide hope to underserved patient communities." The firm is developing two therapies for the potential treatment of sickle cell disease (SCD), a lifelong, devastating inherited blood disorder, including its late-stage oral, once-daily product candidate Oxbryta (voxelotor). The firm is also advancing its inclacumab drug, a p-selectin inhibitor in development to address pain crises associated with the disease.

Syros Pharmaceuticals started the day with a market cap of $196.1 million with 42.44 million shares outstanding and a short interest of around 4.4%. SYRS shares opened higher today at $4.88 (+$0.26, +5.63%) compared to yesterday's $4.62 closing price. The stock has traded between $4.82 and $5.97 per share today and presently is trading at $5.56 (+$0.94, +20.35%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.





Want to read more about Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe